Preparing for the SuperStream deadline

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With the SuperStream deadline for small business fast approaching, MYOB is warning SMEs get prepared.

The SuperStream system requires employers to pay super contributions for employees electronically, and to send the data electronically. The data is linked to the payment by a unique payment reference number.

The ATO says all contributions can be made in a single transaction even if they’re going to multiple funds.

According to MYOB, there is still confusion around compliance dates, which could put SMEs in the ATO’s firing line.

The cloud accounting software provider highlights the first deadline for SMEs falls on 1 October, in which a number of new tax tables relating to individual tax rates will apply. Affected SMEs will be required to update their withholding tax tables by this date.

“These changes will not be backdated, and any tax deducted from 1s July will be balanced out in the individual tax returns,” MOYB said in a statement.

The original deadline for small businesses to be using SuperStream was 30 June 2016, however, the ATO has granted compliance flexibility until 28 October 2016. Businesses with 20 or more employees should already be using SuperStream.

MYOB highlights that from 1 November 2016, the ATO will crack down on non-complying small business employers.

“SMEs are telling us they are confused and unaware of the deadlines set against them, and we encourage them to get clarification from their accountant or book keeper,” advises James Scollay, MYOB’s general manager of SME Solutions.

In fact, research conducted by MROB earlier in the year shows around one-third of SMEWs were at risk on SuperStream non-compliance, and one-quarter were unaware of the deadline.

The ATO has a simple step-by-step SuperStream checklist for employers that can be accessed here.